Smith v. Warr
Supreme Court of Utah
564 P.2d 771 (1977)
Relevant factsFree
After Smith (plaintiff) contracted to buy property from Warr (defendant), an adverse possession suit against Warr swept in Smith as a defendant too; Smith counterclaimed for breach of the purchase contract while continuing to make payments, and the trial court found Warr breached in good faith (no fraud or bad faith) and awarded Smith only his expenses and payments made, declining expectation damages, costs, or attorney fees.
IssueFree
Whether the proper measure of a purchaser's damages for a seller's breach of a real property purchase agreement, where the seller cannot deliver clear title, is market value at breach minus the unpaid contract balance, even absent fraud or bad faith.